A range bound movement was witnessed as key benchmark indices retained positive terrain in mid-morning trade. The gains for benchmark indices were small. The market breadth indicating the overall health of the market turned negative from positive. The barometer index, the S&P BSE Sensex, was currently up 30.79 points or 0.11% at 26,881.84. Brent fell for a second day in a row. Falling crude oil prices augur well for India as it imports 80% of its crude oil requirement.
DLF slumped after media reports suggested that the new BJP led state government in Haryana would inquire into all land scams, including the controversial deal between UPA chairperson Sonia Gandhi's son-in-law Robert Vadra and realty giant DLF. Cairn India fell on lower crude oil prices. Shares of defence equipment makers rallied on reports the government on Saturday, 25 October 2014, cleared defence projects worth Rs 80000 crore.
In overseas markets, Asian stocks declined on concerns of slowdown in China. US stocks edged higher on Friday, 24 October 2014, helped by earnings from Microsoft and Procter & Gamble and as concerns eased over the possible spread of Ebola in the United States.
Earlier, the Sensex and the 50-unit CNX Nifty had, both, hit their highest level in almost five weeks at the onset of the trading session.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month October 2014 series to November 2014 series. The near month October 2014 derivatives contract expire on Thursday, 30 October 2014.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures edged lower for the second day in a row on ample oil supplies.
At 11:17 IST, the S&P BSE Sensex was up 30.79 points or 0.11% at 26,881.84. The index jumped 143.91 points at the day's high of 26,994.96 at the onset of the trading session, its highest level since 23 September 2014. The index gained 0.07 points at the day's low of 26,851.12 in morning trade.
The CNX Nifty was up 6.10 points or 0.08% at 8,020.65. The index hit a high of 8,064.40 in intraday trade, its highest level since 23 September 2014. The index hit a low of 8,014.30 in intraday trade.
The BSE Mid-Cap index was off 15.06 points or 0.16% at 9,657.97, underperforming the Sensex. The BSE Small-Cap index was up 12.27 points or 0.12% at 10,674.92, outperforming the Sensex.
The market breadth indicating the overall health of the market turned negative from positive in mid-morning trade. On BSE, 1,158 shares dropped and 1,145 shares rose. A total of 93 shares were unchanged.
Cairn India fell on lower crude oil prices. The stock was off 2.79%. Lower crude oil prices would result in lower realizations from crude sales for oil exploration firms such as Cairn India.
Shares of defence equipment makers rallied on reports the government on Saturday, 25 October 2014, cleared defence projects worth Rs 80000 crore. Bharat Electronics (up 6.46%), BEML (up 5.79%), Astra Microwave Products (up 4.83%), Bharat Forge (up 0.45%), L&T (up 0.43%), Tata Power Company (up 0.62%), Dynamatic Technologies (up 0.19%), Walchandnagar Industries (up 4.46%) and Pipavav Defence & Offshore Engineering Company (up 4.76%), edged higher.
The big-ticket step was the decision to build six submarines in India at a cost of about Rs 50000 crore rather than sourcing it from outside, report said. The decision is in line with Prime Minister Narendra Modi's 'Make in India' pitch.
DLF slumped 8.13% after media reports suggested that the new Bharatiya Janata Party (BJP) led state government in Haryana would inquire into all land scams, including the controversial deal between UPA chairperson Sonia Gandhi's son-in-law Robert Vadra and realty giant DLF. The BJP garnered a majority in the recently held state elections and Manohar Lal Khattar took oath as Haryana Chief Minister yesterday, 26 October 2014.
In the foreign exchange market, the rupee edged higher against the dollar. The rupee was hovering at 61.2275, compared with its close of 61.28 during the previous trading session.
Brent crude oil futures edged lower for the second day in a row on ample oil supplies. Brent crude for December delivery was off 23 cents at $85.90 a barrel. The contract had lost 70 cents to settle at $86.13 a barrel on Friday, 24 October 2014. Global oil supply remains high despite persistent geopolitical risks in producers such as Iraq and Libya.
The government's decision this month to decontrol diesel prices and a sharp decline in global crude oil prices recently will help India in containing its fiscal deficit, current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
Meanwhile, the Election Commission of India on Saturday, 25 October 2014, announced schedule for assembly election in Jharkhand and Jammu & Kashmir. Polls in both the states will take place in five phases from 25 November 2014 to 20 December 2014. The results of polls in both these states will be announced on 23 December 2014.
Asian stocks declined today, 27 October 2014, on concerns of slowdown in China. Key benchmark indices in China, Hong Kong, Taiwan and Indonesia were off 0.24% to 0.82%. Key benchmark indices in South Korea and Japan were up 0.31% to 0.77%. Singapore's Straits Times was flat.
China's economic growth will slow to 7.2% in the current quarter, down from the previous three months, as domestic demand weakens, said Song Guoqing, an academic member of the People's Bank of China monetary policy advisory committee. The nation's economy will probably expand 7.3% next year, Song said at a forum in Beijing on 25 October 2014. That view contrasts with a prediction by Fan Jianping, chief economist at a state research institute, who said he expects 7% growth in 2015 unless the central government imposes stronger-than-expected stimulus measures.
Trading in US index futures indicated that the Dow could gain 16 points at the opening bell today, 27 October 2014. US stocks jumped on Friday, 24 October 2014, helped by earnings from Microsoft and Procter & Gamble and as concerns eased over the possible spread of Ebola in the United States.
A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy review begins tomorrow, 28 October 2014. The Fed reduced monthly purchases for a seventh time to $15 billion at its September meeting, staying on course to end the quantitative-easing program this week as the central bank weighs the timing of interest-rate rises. Minutes from the last meeting, when policy makers pledged to keep US borrowing costs low for a considerable time, showed officials expressed concern that the economy may be at risk from a global slowdown.
In Europe, none of Europe's largest banks failed the European Central Bank's (ECB) stress test. The ECB released the results of the stress test yesterday, 26 October 2014.
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